TY  - JOUR
AU  - Baldwin,Richard E.
AU  - Martin,Philippe
AU  - Ottaviano,Gianmarco I. P.
TI  - Global Income Divergence, Trade and Industrializatiion: The Geography of Growth Take-Offs
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6458
PY  - 1998
Y2  - March 1998
UR  - http://www.nber.org/papers/w6458
L1  - http://www.nber.org/papers/w6458.pdf
N1  - Author contact info:
Richard Baldwin
Cigale 2
1010 Lausanne
SWITZERLAND
Tel: 41-22-908-5900
E-Mail: rbaldwin@cepr.org

Philippe Martin
Sciences Po
Department of Economics
28 rue des Saints Peres
75007 Paris
France
E-Mail: philippe.martin@sciences-po.fr
AB  - This paper takes a step towards formalizing the theoretical interconnections among four post-Industrial Revolution phenomena - the industrialization and growth take-off of rich  northern' nations, massive global income divergence, and rapid trade expansion.  Specifically, we present a stages-of-growth model in which the four phenomena are jointly endogenous and all are triggered by a gradual fall in the cost of doing business internationally.  In the first stage, while trade costs are high, industry is dispersed and growth is low.  In the second stage, the north industrializes rapidly, growth takes off and the south diverges.  In the third stage, high growth becomes self sustaining.  The model shows under which conditions, in a fourth stage, the south can quickly industrialize and converge.
ER  -